Ontario Securities Commission

National Instrument 94-101 Mandatory Central Counterparty Clearing of Derivatives

On August 30, 2017, an amendment to National Instrument 94-101 Mandatory Central Counterparty Clearing of Derivatives (NI 94-101) received ministerial approval. The amended NI 94-101 will come into force on October 4, 2017.

NI 94-101 creates a framework for Canadian securities regulators to require that prescribed over-the-counter (OTC) derivatives be cleared through a clearing agency. The national instrument imposes, on certain local counterparties, mandatory central counterparty clearing of the OTC derivatives listed in the national instrument. Central counterparty clearing of OTC derivatives transactions results in more effective management of counterparty credit risk and reduces systemic risk in the derivatives market.

The amendment changes the effective date of mandatory clearing for certain counterparties specified in paragraphs 3(1)(b) and (c) to which paragraph 3(1)(a) does not apply. The effective date of mandatory clearing has been changed from October 4, 2017 to August 20, 2018. Minor housekeeping changes have also been made. As the amendment does not materially change an existing rule and/or grant an exemption or remove a restriction and is not likely have a substantial effect on the interests of persons or companies other than those who benefit under it, the Commission did not publish the amendment for comment.

The full text of the national instrument is available in the Ontario Securities Commission’s Bulletin at (2017) 40 OSCB 5801 and on the Commission’s website at www.osc.gov.on.ca.

(150-G448)